A Stock Currently Trades for $63

question 37

Multiple Choice

A stock currently trades for $63. Call options with a strike price of $62 sell for $4.00 and expire in six months. If the risk-free rate is 4 percent, what should the price of a put option with an exercise price of $62 be worth?

• A) $0.62
• B) $0.98
• C) $1.80
• D) $3.00
• E) $5.80

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Definitions:

Total Assets

The sum of all assets owned by a company, as reported on the balance sheet, that are expected to provide future economic benefits.

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SEC

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